LivingSocial told CNNMoney that it is moving much of its customer service from its headquarters in D.C. to Tuscon, " so some job openings will be available in that area. Sales and editorial, however, have simply been "streamlined."

"We've gone through two years of hypergrowth, from roughly 450 employees to 4,500," Andrew Weinstein, a company spokesperson, said. "The space has gone through such growth that we needed to catch our breath," LivingSocial says.

LivingSocial denied that these layoffs suggest that the daily deals business is doomed. "We think this actually puts us on the right path for long term growth and profitability," Weinstein said.

We've reached out to LivingSocial for comment and will update this story when we hear back.